Warranty Period for Buildings Completed Under Construction

The Ministry for Communities and Territories Development of Ukraine has developed and submitted to the State Regulatory Service (DRS) for approval the Draft Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine Regarding the Establishment of a Warranty Period for Completed Construction Projects That Have Been Officially Commissioned.”

The draft law was developed pursuant to the third paragraph of subclause 1 of clause 5, Section IX “Final and Transitional Provisions” of the Law of Ukraine No. 3153-IX of June 10, 2023, “On Consumer Rights Protection” to ensure the protection of consumer rights in the event of latent construction defects discovered within the 10-year warranty period.

Current Legal Regulation

According to Article 884 of the Civil Code of Ukraine, the contractor guarantees that the construction object will meet the parameters defined in the design and estimate documentation and will be suitable for use in accordance with the contract during the warranty period. The warranty period is ten years from the date of acceptance of the object by the customer, unless a longer period is provided by the contract or the law.

In addition, Cabinet of Ministers Resolution No. 668 dated August 1, 2005, stipulates that the warranty terms for the quality of completed works are an essential condition of the construction contract and must not be less than ten years.

According to parts one and four of Article 884 of the Civil Code, the contractor guarantees that the construction object will achieve the parameters specified in the design documentation and will be suitable for operation under the terms of the contract throughout the warranty period, unless otherwise specified in the construction contract. The warranty period is ten years from the date the object is accepted by the customer, unless a longer period is established by the contract or by law. If defects are discovered during the warranty period, the customer must notify the contractor within a reasonable time after discovering them.

Article 1 of the Law of Ukraine of June 10, 2023, No. 3153-IX “On Consumer Protection” (enters into force one year after its publication, but not earlier than the day of termination or cancellation of martial law introduced by the Decree of the President of Ukraine No. 64/2022 of February 24, 2022, “On the Introduction of Martial Law in Ukraine,” and approved by the Law of Ukraine No. 2102-IX of February 24, 2022) defines a defect as any non-compliance of a product with legislative requirements, terms of the contract, or information provided by the business entity about the product, or the presence of a defect in the product as defined by the Law of Ukraine “On Liability for Damage Caused by a Defective Product,” confirmed by diagnostics performed by the business entity or by an independent expert examination (research) of the product.

Product means any goods, work (service) produced, performed, or provided to the consumer, including food products.

Article 1 of the Law of Ukraine “On Liability for Damage Caused by a Defective Product” (hereinafter — the Law) defines damage as injury, other health impairment, or death of a person, or damage or destruction of any property (except the defective product itself) caused by a product defect.

Product is defined as any movable property, including finished goods, raw materials, and components, including items that are part of other movable or immovable property.

This Law regulates the relationships regarding liability for damage caused to the victim by a defective product placed on the market in Ukraine. For matters not regulated by this Law, the provisions of civil, procedural law and consumer protection legislation apply.

This Law does not limit any rights of the injured party under contractual or non-contractual obligations that establish liability different from that defined by this Law — including the right to compensation for moral damage or compensation in specific areas of civil relations in accordance with the applicable law (Article 2 of the Law).

Article 6 of the [Law of Ukraine on Liability for Damage Caused by a Defective Product] stipulates that the injured party must prove:

  • the existence of damage;
  • the existence of a defect in the product;
  • the causal link between the defect and the damage.

The injured party has the right to request from the manufacturer the documentation related to the product that caused the damage due to its defect — to the extent necessary to prove the circumstances listed in part one of this article.

The third paragraph of subparagraph 1 of paragraph 5 of Section IX “Final and Transitional Provisions” of the Law of Ukraine “On Consumer Protection” provides for the development of a draft law regarding mandatory warranty obligations by developers for construction projects for a period of at least 10 years from the date of their handover to the consumer.

At the same time, under parts five and eight of Article 39 of the Law of Ukraine “On Regulation of Urban Development Activities”, the date of commissioning a completed construction project is the date of registration of the declaration of readiness for operation or the issuance of a certificate of readiness.
The operation of completed construction objects that have not been properly commissioned (if required by law) is prohibited.

In other words, a completed construction project may only be used after being duly commissioned (i.e., after the registration of a declaration of readiness or issuance of a commissioning certificate).

Considering the above, it became necessary to amend legislation of Ukraine in part concerning the warranty period for completed construction projects, which have been duly commissioned.
These amendments should apply not only to consumers who signed a contract with the developer but also to subsequent owners who acquire ownership of the real estate within the 10-year warranty period (as a property may change hands multiple times during this time).

For this purpose, the Ministry for Communities and Territories Development of Ukraine developed a draft Law of Ukraine “On Amendments to Article 884 of the Civil Code of Ukraine.” However, following the review by relevant government bodies, it was decided to refine the provisions of this draft law by instead amending the Law of Ukraine “On the Regulation of Urban Development Activities,” which governs public relations in the field of urban development, and by clarifying the provisions of the Law of Ukraine “On Consumer Protection.”

Proposed Amendments

The warranty period for completed construction projects that have been duly commissioned (excluding projects carried out based on a building passport and projects classified as low-consequence (risk) class CC1 constructed through owner-builder/self-construction methods) shall be ten years from the date of official commissioning.

The quality warranty for completed construction works shall be ensured by the developer (or its legal successor). The developer (or its successor) shall be held liable for defects that affect the functional suitability of the completed property (real estate) and are identified within the warranty period, unless it proves that the defects arose through no fault of its own. Disputes regarding defect elimination between the property owner and the developer (or successor) shall be resolved in court.

In my opinion, it would be reasonable to introduce differentiated warranty periods based on the risk class, construction cost, type of building, seismic risk of the region, and other factors. The minimum warranty period should remain 10 years, including for CC1-class buildings.

Currently, most houses built with building passports are constructed without meaningful supervision or warranties, and often with the sole purpose of selling them. Unfortunately, Ukrainian legislation lacks provisions restricting the sale or lease of such buildings. It would be appropriate to introduce legal limitations on the alienation or leasing of these structures within the first 3–5 years after commissioning—limiting use during this period exclusively to the owner and their family.

Given that the expected lifespan of monolithic frame buildings is typically 100 years or more, I believe it would be logical and reasonable to set a minimum warranty period of 30 years for this type of structure.

For discussion of the current legal framework and the proposed amendments, join the Urban Planning in Ukraine discussion group.

Yuriy Brykaylo,

DREAMDIM & URBANDATA

Ⓒ 2025

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